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Backgrounder

Tenggara Backgrounder is a weekly political and business briefing service combining insights and analysis by in-house experts and those from the Centre for Strategic and International Studies (CSIS) and Universitas Prasetiya Mulya, as well as background information from The Jakarta Post journalists. Tenggara Backgrounder provides you exclusive insights into what’s happening behind the scenes along with insider scoops that are not published in the media.

Edition

June 19, 2026

Students take to the streets, targeting Prabowo, but military response is swift

Students from Indonesia's leading universities have once again taken to the streets in Jakarta and other major cities, about eight months after the last wave of mass protests turned violent. This time, they are specifically targeting President Prabowo Subianto's leadership and governing style, which they blame for the country's current economic difficulties.

Other Topics
  • Military and police expand further into civilian sectors  
Who should pay for Greater Jakarta’s public transit?

After more than two decades without a fare increase, the Jakarta administration is once again debating whether it is time to raise Transjakarta ticket prices. As passenger numbers continue to surge and operating costs outpace revenue growth, maintaining the current flat fare of Rp 3,500 (20 US cents) is becoming increasingly difficult. Yet the debate extends beyond whether passengers should pay more. It also raises a broader question: Should Jakarta alone continue subsidizing a service that increasingly benefits commuters from across Greater Jakarta?

Other Topics
  • RI’s state-owned bank buyback talk sparks rally, but structural risks remain
  • Pertamax price hike highlights Indonesia’s costly fuel subsidies
  • Lower unemployment rate masks labor market weakness
Edition

June 12, 2026

Police secure more power, less oversight  

The passage of amendments to the 2002 Police Law marks a significant expansion of the National Police's authority, renewing concerns that the institution is becoming increasingly powerful while remaining subject to limited external oversight. The House of Representatives approved the bill during a plenary session on June 9, following a few weeks of relatively smooth deliberations.

Other Topics
  • KPK uncovers extortion scheme funding immigration deputy’s jet-set lifestyle  
P2SK revision rekindles debate over BI’s independence, Patriot Bonds

The House of Representatives has approved the Bill on Amendments to Law No. 4/2023 on Financial Sector Development and Strengthening (UU P2SK). According to Finance Minister Purbaya Yudhi Sadewa, the amendments cover 17 key areas, including a provision that would authorize Danantara to issue special bonds. The proposed changes have also reignited concerns about a potential erosion of BI independence.

Other Topics
  • Danantara’s growing mandate raises governance questions
  • Why transmission matters more than ever
  • Lemigas’ new import power risks overlap in energy procurement roles
Edition

June 5, 2026

Costly diplomacy: Prabowo's overseas trips under scrutiny

The more than 50 overseas trips President Prabowo Subianto has taken during less than two years in office have increasingly drawn public skepticism. Critics question whether the frequency of these trips aligns with genuine diplomatic priorities and the administration's stated commitment to fiscal efficiency. Thus far, the government's defense has been less than satisfying.

Other Topics
  • Jokowi’s "safari politik": Strategy, motives and political impact
B50: Energy security at what cost?

As geopolitical tensions expose Indonesia's dependence on imported fuel, the government is accelerating its B50 biodiesel mandate to strengthen energy security. Yet the policy raises questions about feedstock availability, infrastructure readiness, fiscal costs and its potential impact on the palm oil industry, one of the country's largest sources of export earnings.

Other Topics
  • BGN reshuffle puts spotlight on problems in free meals program
  • Bond vigilantes send a warning to Indonesia
  • Deindustrialization concerns return to the spotlight in Indonesia
Edition

May 29, 2026

Military budget swells as roles expand to civilians

Strengthening national defense has long been a priority for President Prabowo Subianto and dates back to his tenure as defense minister. There is no doubt about his administration's focus on defense, given that the country has yet to achieve its 2009-2024 Minimum Essential Force (MEF) target. Yet the public continues to question whether the government's efforts are genuinely aimed at safeguarding Indonesia's sovereignty or attempts to extend military authority into civilian domains.

Other Topics
  • Diplomacy secures release of nine Indonesians from Israel
China Chamber's letter exposes Indonesia’s regulatory uncertainty

As the country's investment climate deteriorates, the China Chamber of Commerce in Indonesia (CCCI) took the unusual step of writing directly to President Prabowo Subianto to complain about shifting regulations, nickel quota cuts, royalty hikes and alleged extortion. This raises troubling questions: Is the government losing control of policy consistency or quietly yielding regulatory authority to its largest investor?

Other Topics
  • Scandal closes in on Djaka, customs outsource initiative gains traction
  • Danantara’s bigger mandate, bigger questions
  • State loss charges in TaniHub case spark concern among venture capital players
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